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Countdown to the Closing Bell

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TOPIC FREQUENCY

Sandy 10, Starbucks 8, New York 7, Us 7, New Jersey 4, Liz 4, S&p 4, Arca 4, America 3, Charlie Gasparino 3, Duncan 3, Caterpillar 2, Wal-mart 2, Bmo 2, Blackberry 2, Hoboken 2, Spiriva 2, Nicole Petallides 2, Obama 2, Sovran 2,
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  FOX Business    Countdown to the Closing Bell    News/Business. Stock  
   market updates. New.  

    November 1, 2012
    3:00 - 4:00pm EDT  

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bell. countdown begins right now. no november chill on this first day of trade for the new month at least for trading. a little cold outside but this after a down october. the first down october in four years. although most of us in the northeast have definitely not put the shock of hurricane sandy behind us, it looks like the markets at least for now are doing that today. trying to make a go of it. dow jones industrials on track for the first 1% gain since september 13th. that's session highs today. the the dow was up more than 177 points. we're still holding on to pretty significant gains here of about 130. leading the dow right now, bank of america, caterpillar, microsoft, caterpillar should be no surprise to anyone. earth-moving equipment will be in great need post sandy. shares of companies expected to benefit from all of the rebuilding after hurricane sandy are rallying today. take a look at masco, up nearly 7%. they do home improvement and building products. then you've got trex company,
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manufacture and distribute wood and plastic composite products related accessories primarily for residential commercial decking application. they are getting a nice boost. watsco also getting a good bump. valspar, big in construction, up nearly 4%. lennox getting a nice 3 1/2% bump here, climate control products for heating ventilation air-conditioning and refrigeration. these are some of the names that are getting lifted by all that's expected when it comes to rebuilding post hurricane sandy. we have a big group of positive economic data boosting the markets. first initial jobless claims came in lower than expected. that is of course the number remember that we want to see go lower. the number of people who stand in line for first time jobless benefits. then private sector jobs, the adp number, that number beat expectations, increasing by 158,000. topping estimates of 135,000. and this is the one that i kind
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of like the best, consumer confidence jumping. it's now at its highest level since february of 08. but remember, some of it may have been compiled before the storm hit. you have to know with these data points that a lot of it has to do with the psychology of the people out there who are being questioned. finally, the ism, institute for supply management report showing manufacturing expanding more quickly than expected, making the industrial sector one of the best performers today. sure is nice to have a strong rally to take our minds off the fact that there is no gasoline or power in much of the tri-state area. but we have power on the floor of the new york stock exchange in more ways than one. traders down at the nyse and cme group in chicago and the nymex which is in lower manhattan. okay, john, nice move today. did you expect this big a rally? >> i did not expect this big a rally. yes, we've been waiting all week for economic news to come out. heading into tomorrow, we're looking for that unemployment number. but the numbers we got today, i think this market really needed that boost, needed that lift.
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i think investors have been waiting for action to come into this market. heading into tomorrow's number, the numbers we got this morning, might be a little foresight as to what we should be expecting tomorrow. we head into tuesday, we've got the elections. still neck-and-neck depending on which poll you start looking at. at this point right now it is somewhat positive or encouraging to see that what we've been through so far this week, the two days off, relatively quiet day yesterday. it seems like the dust has settled, and the money is starting to come slowly back on a short-term basis into this market here. liz: let's hope so. but it's slowly but surely. kevin down at the cme, you know, you can look at things from gasoline and oil inventories, which surprised at least -- [inaudible] -- for oil inventories the expectation was to see a build of 2.3 million barrels, what we got was a drawdown which should be bullish for prices of about 2 million, and what do we see in we do have crude just up slightly, nothing too dramatic.
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what was the trading feel today? >> yeah, i think when you look at commodities in general, and particularly what happened earlier in the week you saw a little bit of money coming off the side lines. i agree with your last guest some of the money is coming back into the markets slowly but surely. i think really we have seen the general trend of markets trading in a range, a broad range ahead of the election. i think that's what's on everybody's minds even looking at this oil data coming out this morning, it was quite a shock to see a little bit of a drawdown but not enough to make money managers put that to work yet given the election and what we think the election outcome may be. i think that's really what everyone is waiting on, much more so than even the unemployment number that's going to come out tomorrow. liz: okay, elliot, i have to ask you about these lines for gasoline at this point. we know that certain pipelines that take gasoline and refine products all the way down from the gulf of mexico back up to our area, some of them are still shut down. my question to you, with the experience that you've seen over many years and many storms, are
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we going to see a horrific spike in prices at some point at the pumps, at least around the northeastern region? >> you know what, liz? you know, it's very difficult to make that sort of call. my instinct is that we will not. i think that, you know, the big deal is really the refinery right here in new jersey. there were some rumors that it was going to get fired back up sooner than expected, now it looks like next week. the truth is there's gas here now. the problem is people can't get it. if there's no electricity, you can't pump the gas. so it is like a domino effect. and once people get the power back on, they won't need the gas because they won't need the generators because they have the power now. so it's a vicious cycle, but i don't expect to see a huge spike in gas because of that, but that's not to say i don't think gasoline is going to go up because i think it will. liz: they had police posted at some gas stations. the vince lombardi gas station
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on the turnpike is a very busy one. thanks guys. the dow is up triple digits, 13,228. today's institute for supply management manufacturing number providing a lot of propellant for the market rally. this is gauge on how manufacturing is doing. we know that manufacturing numbers from the summer pretty much a disappointment and are perhaps at fault for the lower corporate earnings or at least some of them this quarter. u.s. chief market strategist for ing investment management, 170 billion in assets over there, he is joining us exclusively. i don't know where to start. we have the corporate earnings picture which to me wasn't that bad. somebody yesterday told me what do you mean 72% have beat on their estimates of s&p 500 companies, the beats weren't that great, but i'm looking for silver linings. you see this carrying over into q4? >> yes, the big number today is manufacturing. why it's so important, it is a
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predictor of future corporate earnings. i was very concerned when i saw three consecutive months during the summer of negative manufacturing. it looks like this third quarter was predicting the negative earnings. we are at negative earnings -- corporate earnings about minus 1, minus 2 percent. but we just had a second consecutive positive manufacturing. ism manufacturing is always the first day of a new month. and this was over expectations. we are expecting a pullback. this is what surprised the market. this is what set off the rally. and on top of a good adp report. liz: it's a little bit of conundrum though because you really like the consumer discretionary space and that means that you believe the consumer has money to spend on things that they don't necessarily desperately have to need, like food and gasoline? >> yeah, you saw last week retail sales hit an all-time record high. we think some of that is from the aggressive quantitative easing from the fed. they are pumping 80 billion dollars a month into this market
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by buying mortgage backs and housing has turned which really, that's the most important asset for the consumer, is giving confidence back, and that's why they are spending. liz: i think that spending is going to come from the storm. i truly do. i had to run across the street to the gap and get my kids' clothes. i mean, i tell you, we don't have power. we are are eventually going to have to spend to repair a few couple things. i think there might be that sort of theory when things break down, during a massive storm, this gyrates the gdp a bit, do you see that, or will it pull money off the gdp? >> i think this is isolated in the new york area. certainly spending was brought forward, but nationally again i'm looking at trends, broad trends, and i think because the housing, because -- and i think unemployment is better than -- and tomorrow's unemployment is going to be the big whammy. it could change the nature of
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the elections. liz: what do you think? >> i'm at consensus of 120,000, if it is meaningful better, it favors the president. if it's meaningful worse, it favors governor romney. liz: i'm sitting there looking at one of your picks you like, it's technology. i'm thinking technology doesn't work when you have no electricity. we need to also look more broadly than just the storm. this is affecting the northeast. there's the midwest. there's california. there's texas. they have lots of energy. why do you like technology right now? >> not just in the consumer, not in the mobile phones, but technology is one of those trends that affects every industry. it affects healthcare. it affects energy. energy we saw the new natural gas fracking that's bringing enormous supplies to the market. we could be energy independent because of the technology applied to energy. liz: yet you don't like energy, you say avoid energy. >> who is the biggest beneficiary of this new supply is really the consumers, and the businesses have low cost gas, natural gas has plummeted in
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price, so that actually hurts in an ironic way the producers of energy, benefits the consumers of energy. liz: that's why we have doug here to kind of help our brains go through the scenario of why energy and technology are on opposite ends at least for his preference. closing bell ringing in 50 minutes. is it time to cut the cord to your traditional cable box? i know some of you have already done that. but there are those of you who are sitting on the fence or the cable box so to speak and you need to meet the ceo of a company, he says yes, chop that thing off, today he's launching the latest streaming box to hit the booming market. i will be talking live and exclusively to him, about the next wave of media. what can you get from his all you can eat dvr box? can you get everything you want? we will find out.
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bob...
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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. younow, i'm glad we're both running a nice, clean race.
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no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
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liz: we have some breaking news. new york mayor bloomberg endorsing president obama for reelection. the mayor cites his leadership on climate change. interesting any enough.
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-- interestingly enough. mayor bloomberg used to be a republican, he switched over to independent. i think he was also a democrat. just recently after the storm when president obama offered to come to new york, mayor bloomberg said no please don't it is going to cause more trouble. we have so much difficulty moving around and people took that as mayor bloomberg hates president obama. in fact people here at this network were saying that. guess what? doesn't hate anymore enough to not endorse him. mayor bloomberg endorsing president obama. let's take a look at the power mover of the hour. it's rimm. shares of the blackberry maker up 10% right now. not bad at all. up 14% over the past two days. let's give you that picture here. here's the prior day, so you can see a very nice move over just two days. rimm began testing its blackberry 10, wasn't that thing supposed to be out a long time ago? it is finally coming out. blackberry 10 this week saying we could expect to launch in the
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first quarter of 20 -- [inaudible]. let's send it over to nicole petallides at the new york stock exchange. nicole: second trading day of this week, first trading day of november. let's take a look at some industrial names, liz, as you talked about. snap on inc., also cooper industries, and illinois tool works. we are seeing these industrials getting a pop here. they are one of the group leaders here that we're seeing today. materials, information tech, industrials, financials, all doing well. as i noted, this is a broad-based rally. only one sector has been in the red. and that's utilities, so we are seeing gains across the board. you've seen a majority of those dow components with green arrows, and of course a lot of the names that are related, liz,
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to the hurricane clean up are names that doing so well, the rebuild. back to you. liz: the mascos of the world up, 6, 7 percent a lot of this is everything from coatings to sidings to refrigeration, all of those companies doing very very well. more media and pop culture craving people, they are dying, if they don't have their electricity right now -- they are dying for that right now if they don't have their electricity right now. today one company teaming up exclusively with wal-mart, now, you know when wal-mart says yes to something, you know there are going to be major sales here but wal-mart said yesterday to boxee for its holiday launch of a new device called boxee tv. the ceo of boxee is joining me now in a fox business exclusive to talk about this thing which is not a cable box, not a cable box. >> no, much smaller. liz: i'm picking it up because it is so tiny.
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you can't pick up my cable box, certainly. this is very little. tell me what this does. >> so for 98 bucks at wal-mart, you can get the broadcast channel. so abc, cbs, nbc, fox, univision -- liz: how much? >> 98 bucks. liz: i can get that with rabbit ears for my television. >> that's true, so either rabbit ears you can put on your television or connect it to your cable connection from the wall and then what's exciting about this box, it has an unlimited dvr so you can record as many shows as you like and we actually up load them to the cloud, rather than store them on the device. which means you can record as much as you like and watch it from any device. liz: let's talk about the holiday promotion. what do you get, unlimited dvr capability? >> yes. it's a lot of free.
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then for so much a month, you can record as much as you like and watch from anywhere. we think it is like changing from film camera to digital camera. liz: can i get every single cable channel? >> no, you can get only the basic cable channels for now until we partner with the cable companies. >> liz: what are you hearing from the cable companies? >> we think this device is friendly to the cable industry. liz: do you think or do they think? >> it is a device that uses a lot of broad band. you know, broad band is becoming a bigger piece of their business and they can put their apps there, so you can access the cable vod services, and actually this device enables you to access the basic cable service. liz: right, so it's so small a lot of people are wondering how the heck do i then limit dvr capability because everything is stored in the cloud. which leads me to ask how is the quality of what i'm looking at? is there any degradation of the
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actual quality of what i -- okay, i want modern family, could it be a little fuzzy going up and down the upstream part of it, downstream? >> so i can actually try and show you. liz: try is the operative word. our cameraman will come behind you and take a look at this. i would also love to know about the resolution. >> yes, so we treat the signal that comes from the home and then we spend a lot of time, over a year, actually optimizing the way playback would work. liz: what are we going to show here? pick a show. >> yeah, i'm going to watch tmz. liz: hey, harvey, it is harvey levin. all right. the resolution looks good. >> it is an hd signal that we're getting back from the box, and then up loading to the cloud. it comes from the cloud in very high quality so it can go to your tv or ipad or laptop in
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high res. it looks great as you can see. you do need to have a broad band connection to make it work. liz: when is it available at wal-mart? >> today. liz: just under 100 bucks for the actual. >> if you like the dvr and use it a month, 10 bucks a month would probably be cheaper than any other dvr on the market. liz: when you can get every channel, you may be very disruptive. >> yes, cord cutting is all about content; right? if you want to watch the fox business channel, it is only on cable, you are not going to cut the cord, right? so it is all driven by what you are watching. we don't think people are making those decisions based on devices. they are making those decisions based on if i'm a big sports fan and want to watch espn every night, i'm not going to cut the cord. >> boxee ceo, we want to watch and see how this develops. keep us posted on your sales
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numbers. thank you very much. >> thanks. liz: guys without power, listen he's up in rockland. >> yes. liz: we're all suffering here. closing bell ringing in 39 minutes. a story you will see only on fox business. charlie gasparino on why the new york stock exchange really halted trading on monday and tuesday and it may have much less to do with hurricane sandy than we were initially led to believe.
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liz: let's get to your fox business market check. as you see green on the screen, it is kind of stunning to note that the dow jones industrials at one point was up 177 points and the nasdaq right now a real recovery here, nasdaq has really suffered over the past two days, more so than the other indexes.
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nasdaq up 39 points. the russell 2000 flipped over to positive, up about 7 1/3 points. and the s&p 500, that level 1425 gives you a little bit of breath to breathe there because people started to get awfully concerned when they were getting more around 1410, 1415. the plot thickens over why the new york stock exchange really decided to halt trading monday and tuesday, and it may have less to do with superstorm sandy than you might think. nobody's been doing a better job on this story than our charlie gasparino. he's joining us now with the latest exclusive details. >> why do we do a story like this? we're not trying to be monday morning quarterbacking here, but there is a public service here. the markets i believe need to be opened at some point. need to be opened without people in harms way. firms and exchanges need contingency plans. they obviously didn't or at least a good enough one. that's why they had to close monday and tuesday where the value of corporate america was put on hold. it was only two days, liz, but suppose it was two weeks, that would be a real issue.
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we hope they move forward. that's why we're doing this. let's go through just the chronology on what happened when everybody knew -- when did you know superstorm sandy was coming? liz: well, certainly last week. >> yeah, that's what i'm saying -- liz: midweek if not earlier. >> i came back from dallas on saturday because on thursday i knew this thing was happening. so the exchange knew it was coming as well. all the exchanges. here's what we know, the major exchanges had a big meeting on friday, discussed how they might plan for a monday opening. they had the same -- they had meetings with themselves and talking to their customers ie the brokerage community. we should point out that the sec communicated to the exchanges they wanted a monday opening as well. we should point out that the nyse told the trading community, both friday and saturday, that they should plan on a normal opening. okay? they did tell them that there's always contingency plans out there, ie, we may go full electronic. no floor traders, but, you know, we're doing a monday opening.
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what did that mean to the brokerage community? the goldman sachs, the credit suisse, what did that mean to the big traders? they have their systems in place to deal primarily with the integrated system that the new york stock exchange offers. you know, part electronic, part brokers on the floor. they are not really up to snuff dealing with a full electronic system. on sunday morning around 11:00 duncan niederauer starts to think twice about this. maybe they shouldn't be bringing their own people into new york. maybe floor brokers shouldn't be going to work. liz: that's reasonable. >> let's go for -- [inaudible]. he did this obviously without knowing that his clients aren't set up to go that way.
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-- that his clients aren't set up to go full arca. they said we are not set up to deal with arca. liz: when you say we, who? >> let's just say most of the major wall street firms said they couldn't deal -- liz: because bnp paribas said they were fine, they could have done it, they were all ready. they are not exactly one of the major majors. if the little guys can, why can't the majors do? >> who knows. i don't know what they said during that call. i can just tell you there was a reason why duncan did a 180. that was why. here's the question, should the brokers have been already compliant fully with arca? should duncan have told them saturday that we may go full arca, underscored it, listen, just be prepared. is there a combination of both, that they both screwed up? i think the latter was probably it. that they both -- it was a lack of planning on the firms. duncan sprung it on them late. in any event, let's hope -- you
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know, here's the problem with this is this, this was the most telegraphed superstorm natural disaster in recent memory; right? liz, you know, terrorist attacks come out of nowhere. and we don't know if they are going to be prepared. so, guys, get prepared. liz: people accuse the media of being too hyper about it and the politicians of overstating it. i guess we did just fine. >> i knew on thursday i had to get back saturday. maybe they should have been preparing. liz: do what you have to do. charlie gasparino thank you very much. the closing bell ringing in 29 minutes. post storm stocks not as obvious as the home depots and lowe's of the world. we have already talked about those names and the weyerhaeusers and lumber companies, but bmo capital market reit analyst has some
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names. the popular town known as the mile square, now 25% of that mile square is under water. we will have more live from our hurricane chaser jeff flock coming up.
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man, chanting, snapping fingers: oh, those boys are much too much! those boys are much too much! we got the spirit, we're hot, we can't be stopped! we got the spirit! we're hot! we can't be stopped! we're gonna beat 'em and bust 'em... announcer: the smallest moments can have the biggest impact on a child's life. both chanting: let's...get... a little bit rowdy. r-o-w--whoo!--d-y. announcer: take time to be a dad today. one more time. call or visit fatherhood.gov to learn more. you know it can be hard to lbreathe, and how that feels.e, copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder
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does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd spiriva helps me breathe better. (blowing sou) ask your doctor about spiriva. liz: we want to bring your attention to advanced auto parts. the stock was halted earlier today after sources say that it's hired blackstone advisors to explore a potential sale of the company. when it started trading again, boom, up nearly 12%. want to just quickly tell you, this is a company run by a very smart guy, darrin jackson who
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was come from nordstrom's, come from best buy back in the good years, and in essence, they have retail shops for the do-it-yourselfers, for all things automotive, the aftermarket parts, the accessories, batteries, maintenance items, it has been a very strong company through the financial crisis because people stopped for a while as you know buying cars. but the do-it-yourselfer market has been very profitable. this is a company based in roanoke new jersey. can we see a full one year, two year? that way you can see how they have really been doing. again, a company now that has hired blackstone to explore the possibility of going private is something that yeah, that shocked the stock, that's why they had to absolutely halt it for the moment and then here you see the moment where it opened, spiking about a 12 full percentage point gain, not bad for advance auto parts. let's get to robert gray with your earnings preview. robert: thank you very much. we're going to check out the big names that are reporting after
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the closing bell. let's take a look how they are moving today. we have the likes of starbucks, linkedin, dreamworks, las vegas sands all participating at different degrees in today's rally. starbucks now we take a look at it, the shares up more than 11% over the past year, obviously well off their highs though. here's what analysts are expecting earnings per share 45 cents. revenue 3.38 billion dollars. investors also keeping an eye on just how global economic slowdown is affecting the company. that's the reason it gave for missing earnings estimates last quarter. the new single serve machine hit the marketplace in september. watch for any sales numbers out of that. for new details on european restructuring plan as well. ceo howard schultz said that has quote turned a corner. for coverage on starbucks and the rest of the names in reporting less than half hour's time, don't miss after the bell. right now let's get back to the countdown with liz. liz: i'm looking at green mountain coffee roasters because they are the one who are making
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the big k cup business, the actual product itself and not just the cups themselves. it is up about 8%. so not at the moment getting hurt. but when you see those sales numbers from which starbucks had brought on to take on perhaps green mountain coffee's k cup machine, we will see what happens. there's green mountain. nicole petallides on the floor of the new york stock exchange. we are holding on to triple digits just barely though here. tell us what looks good right now. nicole: there's a lot to talk about. number one, you are making me want another great cup of coffee. let's talk about what we're seeing here. the dow jones industrials are doing incredibly well on the first trading day of november, where we're up 107 points. the other thing we should note is that volume is heavier than normal. that's a good sign of conviction for the bulls out there. and take a look at these retailers. when you look at names like abercrombie & fitch, also buckle, another winner, urban outfitters, we have gotten in
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some retail sales numbers. these are some retailers doing well in the group overall, we are seeing mostly up arrows across the board. only utilities have been a little bit weak. the question is how sandy may affect not only retailers but all industries across the board as we start to get numbers as they come out in the future. nordstrom's for example, noted that they didn't know how things would go concerning what we have been seeing with sandy for november retail sales; right? so this will be the wildcard going into the back half, the end of 2012. back to you. liz: that is very true. we just don't know at this moment. thank you very much, nicole. sewage-laced water, no electricity, no heat, and now food shortages, this is hoboken, new jersey right now, home of frank sinatra, one of the higher end neighborhoods. the road to recovery will be long for many residents there. facing major gasoline shortages on top of sandy's devastation.
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jeff flock live. your live shot in the last hour made me nervous. there was such a crowd of people, i assume they were waiting for food. i just got anxious because you look at that and you see it could provide some real anger, and we know what happens when people don't get what they want when they are really upset. jeff: i have seen these hurricane situations where the first few days things are okay and then people do get very short. here's a gratifying thing, take a look at this group right here. this is a group of people that have come to volunteer, to help with other older folks. this young lady is briefing them on how to go about that, how to help. a lot of people have come out of the woodwork to try and do their best to make people get through this, or help people get through this, and there's a lot to get through. as you point out, sewage water is still in basements, not on the streets anymore, that has gone down. but, you know, people bringing stuff, trying to, you know, help donate things. so far i'm really impressed with
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what i see. these people have not really been through a hurricane before. i mean how many hurricanes have gone through hoboken, new jersey? how often do you expect that to happen? we hope this is a once in a lifetime scenario. i'm gratified by what i see so far. although there is much more to come. liz: are those guys fraternity guys with the -- are those greek letters? jeff: they are, yes. liz: from what university? can you ask them? jeff: where are you guys from? >> we're from stevens -- jeff: which is in town? >> in town. jeff: you're volunteering to help out? >> yes. jeff: you're helping. >> we're helping the cause. jeff: okay. very good. liz: yeah, absolutely. hopefully they will be getting credit. you have to do those kinds of volunteer things for those fraternities.
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listen, either way -- jeff: yeah, community service. liz: bless their hearts. thank you jeff very much. i feel better now. i was getting a little nervous. a little nerve-wracking around here but everybody is behaving well so far. there are some sectors that are behaving pretty well. they are getting great boost from recovery efforts in the wake of sandy. the senior analyst at bmo capital is joining me now in a fox business exclusive. you came here to pick out the one sector that i hadn't thought about, a a lot of people hadn't thought about and that is storage. storage and storage reits, talk about this and why you believe it will really get a bump up. >> sure, as we just saw, there are a lot of individuals who have to clean up either their homes or their businesses. and self-storage spaces offer a place for them to store their goods while they clean up. liz: while they clean up, while they actually have to rebuild. a lot of these names are publicly traded; correct? >> right, already four publicly traded names out there. we think all of them will experience an up tick as a
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result of the severe storm. liz: by the way, they have done really well over the past year. it has nothing at least up until five days ago to do with the storm, but for example, sovarn self-storage, up already 46% over the past year. what do you expect from this company? how does it work? >> sure, we expect continued strong operating results from the self-storage reits, primarily because there's very little new construction of new storage facilities. this will help all of the operators in the space including sovran. sovran has had a really good run. they have had some management promotions there. so perhaps it's a little bit of a special story. liz: psa, public storage, i see a lot of those around, they have already been up about 13%. what's the difference between them and sovran? would you pick one over the other? >> sure, certainly would pick one over the others. psa by far the largest storage
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operator. we actually just upgraded the stock today from underperform to market perform because the stock did underperform this year relative to the rest of the sector. so we think that the valuation has corrected, but we see kind of, you know, average returns for public storage, psa from here. liz: and the winner at least over the past year, extra storage space, up 62%. >> right. liz: and because of this, you expect an even bigger jump on top of that, sort of more whip cream on top of the cake? >> yes, so extra space like the rest of the industry are going to experience the same pop. however, we have an underperform rating on this stock right now, primarily because of valuation. as you noted, the stock has already gone up quite a lot this year. so we think a little bit of caution is warranted for that name in particular. liz: it is important to point out, this is without the hurricane. those one-year charts show that even without a hurricane, they can do really good business. >> right. it's just been a very, very good period for them coming out of
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the recession. consumers have come back. you know, there was a lot of fear that people wouldn't, you know, would have less stuff in their lives, and that just has not turned out to be the case. liz: bmo capital markets senior editor, thank you very much for joining us. >> thanks. liz: i always wondered if you could get in one of those storage spaces with a little lamp and mini fridge. >> people do that. liz: kind of hang out there. [laughter] liz: we will be right back. dow jones industrials gaining in the last few minutes. now up 120 t. -- now up 121 points. we are 14 mints before the closing -- we are 14 minutes before the closing bell.
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liz: three dow components are lower. the rest are moving higher. to propel this rally of 132 points, the three can't make a go of it right now, pfizer, traveller's and wal-mart, three
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big winners today: intel, home depot and bank of america. then you can see the nasdaq jumping another 43 points. it is not a bad day for the nasdaq. let's bring back doug. he's back to tell you where you should be investing right now. you already said technology which of course brings to us the nasdaq. and i wanted to show people year over year how some of these indexes have looked. all of them, all the major ones, up double digit percentages. but at certain points, it is the nasdaq that really is an eye catcher, isn't it? >> yes, it is. but what we've been advocating is investors need to accept risk, get back in the market. liz: otherwise they miss this which is on your screen right now. one year rally in the nasdaq, one year rally in the russell. same with the s&p and dow jones industrials. look, when you talk about what happened over the past year, a 14% gain for the s&p 500. and people are sitting there scared, didn't want to get in, because oh greece is scaring me and then what else is scaring
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me? europe, and then we get nervous about the fiscal cliff, and in the meantime you missed it. >> if you look at all the global risk markets, large, mid, small, global bonds, even bonds, all of them are up. it's been impossible not to make money in 2012. liz: how do you feel about fixed income? >> i like bonds, good place for volatility control. all of it, corporates, treasuries. liz: which end of the yield curve? >> longer end. think about it this way, the longer the bond is, the more risk control. that's an ad hoc way of looking at it. if you want risk control, the longer bond, then you can take equity risk in a diversified portfolio. liz: you want to leave your money with the government for such relatively low yields, you are not worried about something like that? >> not all of it, but think about it, they are only the negative correlated asset class to all the equities so you want to have that for the risk, it is
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balanced to your portfolio. do i only want governments? no, i like high yield and global bonds. bonds have been the bright spot -- in the past three years the best risk adjust return of any out there. liz: we kept look agent the yield of ten year treasury -- we kept looking at the yield of ten year treasury. there you have it. 1.72%. >> think about bonds, when we're coming to the end of the year, coming to the fiscal cliff, there's a lot of things going on, so i want to be in the equity markets, but as long as i have bonds, i have balance to protect the overall portfolio. liz: doug, it is good to see you. thank you very much for joining us. doug cote, ing u.s. chief market
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strategist. thank you very much. >> thank you. liz: closing bell ringing in justless than 7 minutes. i'm going to be tweeting whether i find gas many new jersey -- gas in new jersey. so follow me. we are on a mission in my house. if you find some, tweet me. was hurricane sandy enough to make one company fold on atlantic city? we have that story coming up. you immediate to hear this. -- you need to hear this. bob...
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oh, hey alex. just piing up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad
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we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
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he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades th a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's just common sense, from td ameritrade.
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liz: exposure to atlantic city which was hit very hard is hurting. found six and three quarters percent. based on a 50% stake in the regatta casino. it was already three hurricane showing weaker year over year results. it had been down 37% since february. today another 6% geared it has been a tough year to date four boyd gaming. a lot of green on the screen. what is going to happen to expect we have lots of earnings. david: we also have starbucks. starbucks taking a hit because new york starbucks were closed. many people suspected they would be doing as they were a year
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ago. let's go to nicole petallides. i have to talk to apple, if i can. are you there perfect. nicole: i am. david: we are running into problems with our connections. apple cannot manage to keep its head above 600. nicole: why not, right click back you see it with an up arrow. you are right. liz: we are waiting key earnings from starbucks and linkedin after the bell. i think it will be fascinating to look at starbucks and compare it to greenbelt in coffee roasters. they are up significantly.

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